13 unchanged sentences
To mitigate the risks associated with gold, silver, zinc and lead price fluctuations, the Company may enter into option contracts to hedge future production.
−Removed: The Company had outstanding Asian put and call option contracts in net-zero-cost collar contracts on 340,200 ounces of gold at September 30, 2020 that settle monthly through December 2022.
−Removed: The Company is targeting to hedge approximately 50% of expected gold production through 2021 and 2022.
+Added: The Company had outstanding Asian put and call option contracts in net-zero-cost collar contracts on 245,025 ounces of gold at March 31, 2021 that settle monthly through December 2022.
+Added: The Company is targeting to hedge up to 50% of expected gold production through 2021 and 2022 and may in the future layer on additional hedges as circumstances warrant.
The weighted average strike prices on the put and call contracts are $1,613 and $1,956 per ounce of gold, respectively.
2 unchanged sentences
and (iii) liquidity risk to the extent counterparties exercise rights to cash collateral for out-of-money hedges under applicable instruments.
−Removed: To reduce counter-party
−Removed: credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution.
+Added: To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution.
The Company does not anticipate non-performance by any of its counterparties.
−Removed: For additional information, please see the section titled “Risk Factors” in the 2019 10-K, in the Forms 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020 and Part II, Item 1A of this report.
−Removed: At September 30, 2020, the fair value of the put and call zero cost collars contracts was a liability of $33.9 million.
−Removed: For the quarter ended September 30, 2020 the Company recognized a loss of $4.5 million related to expired options in Revenue and the remaining outstanding options were included in accumulated other comprehensive income (loss) .
−Removed: A 10% increase in the price of gold at September 30, 2020 would result in a loss of $53.2 million and 10% decrease would not have any positive or negative impact.
−Removed: As of September 30, 2020, the closing price of gold was $1,887 per ounce.
−Removed: As of October 27, 2020, the closing price of gold had increased further to $1,906 per ounce.
+Added: For additional information, please see the section titled “Risk Factors” in the 2020 10-K and part II, Item 1A of this report.
+Added: At March 31, 2021, the fair value of the put and call zero cost collars contracts was an asset of $4.1 million.
+Added: For the quarter ended March 31, 2021 the Company recognized a loss of $0.4 million related to expired options in Revenue and the remaining outstanding options were included in accumulated other comprehensive income (loss) .
+Added: A 10% increase in the price of gold at March 31, 2021 would result in a realized loss of $2.8 million a nd 10% decrease would result in a realized gain of $22.4 million .
+Added: As of March 31, 2021, the closing price of gold was $1,691 per ounce.
+Added: As of April 26, 2021, the closing price of gold was $1,773 per ounce.
Provisional Gold, Silver, Zinc and Lead Sales
4 unchanged sentences
The mark-to-market gains and losses are recorded in earnings.
−Removed: At September 30, 2020, the Company had outstanding provisionally priced sales of 8,504 ounces of gold at an average price of $1,928.
−Removed: Changes in gold prices resulted in provisional pricing mark-to-market gain of $0.3 million during the nine months ended September 30, 2020.
+Added: At March 31, 2021, the Company had outstanding provisionally priced sales of 12,137 ounces of gold at an average price of $1,782.
+Added: Changes in gold prices resulted in provisional pricing mark-to-market loss of $0.6 million during the three months ended March 31, 2021.
A 10% change in realized gold prices would cause revenue to vary by $2.1 million.
7 unchanged sentences
To manage foreign currency risk, the Company may enter into foreign currency forward exchange contracts.
−Removed: At September 30, 2020, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
−Removed: The Company had outstanding foreign currency forward exchange contracts to receive $1.9 billion Mexican Pesos at September 30, 2020 with an average exchange rate of 24.87 that settle monthly through December 2021.
−Removed: The Company had outstanding foreign currency forward exchange contracts to receive $10.8 million Canadian Dollars at September 30, 2020 with an average exchange rate of 1.44 that settle monthly through December 2020.
−Removed: At September 30, 2020, the fair value of the foreign currency forward exchange contracts was a net asset of $7.6 million.
−Removed: For the nine months ended September 30, 2020 the Company has recognized a gain of $1.7 million and $0.9 million related to expired options in Cost Applicable to Sales and Pre-development, Reclamation and Othe r, respectively, and a gain of $7.6 million related to outstanding options in AOCI.
−Removed: A 10% increase or decrease in the exchange rates at September 30, 2020 would result in a gain of $0.3 million or a gain of $15.3 million, respectively.
+Added: At March 31, 2021, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
+Added: The Company had outstanding foreign currency forward exchange contracts to receive $1.1 billion Mexican Pesos at March 31, 2021 with an average exchange rate of 25.14 that settle monthly through December 2021.
+Added: At March 31, 2021, the fair value of the foreign currency forward exchange contracts was a net asset of $9.4 million.
+Added: For the three months ended March 31, 2021 the Company has recognized a gain of $3.1 million related to expired options in Cost Applicable to Sales and Pre-development, Reclamation and Othe r, respectively, and an unrealized gain of $9.4 million related to outstanding options in AOCI.
+Added: A 10% increase or decrease in the exchange rates at March 31, 2021 would result in a realized gain of $4.4 million or $11.8 million, respectively.
Interest Rates
6 unchanged sentences
Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates.
−Removed: The Company had no outstanding interest rate swaps at September 30, 2020.
+Added: The Company had no outstanding interest rate swaps at March 31, 2021.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.